Donald Trump is teaming up with China

US authorities have banned firms from selling parts to China's ZTE for seven yearsMore

US authorities have banned firms from selling parts to China's ZTE for seven yearsMore

Given that USA sanctions were imposed on ZTE due to threats to national security and its violation of trade sanctions with Iran and North Korea, Trump's desire to give the company another chance in the U.S.is truly unexpected.

ZTE denies any wrongdoing, and said in a late April statement that the ban will "cause damages to all partners of ZTE including a large number of United States companies" since it uses chips from Qualcomm, glass from Corning, and optical components from various USA suppliers.

As one of the world's largest telecom equipment makers, ZTE relied on USA companies such as Qualcomm Inc and Intel Corp for components.

President Trump has intervened in the ZTE drama.

Analysts are watching to see if Trump's conciliatory stance will help ease the tensions over trade between the United States and China. "But be cool, it will all work out!"

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ZTE was not banned from selling its products in the US, where it is the fourth most popular smartphone brand, but would nonetheless have needed to immediately transform its supply chain to be able to continue to manufacture devices without USA -made parts. "This egregious behavior can not be ignored".

Then in February, the heads of every US intelligence agency warned Congress that ZTE and the bigger Chinese smartphone manufacturer, Huawei, should not be trusted, since they may be forced to use their technology to spy on Americans by China's government.

Lacking critical equipment, ZTE halted operations, stressing in a statement Wednesday that it is "actively communicating with the relevant USA government departments in order to facilitate the modification or reversal" of the Commerce Department's order.

As a presidential candidate, Donald Trump said in 2015: "China, taking our jobs, taking our money".

But ZTE has also always been the target of scrutiny for regulators and officials in the United States, which is wary of its ties to the Chinese government.

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"Imagine how the United States would feel if China had the power to crush one of our major corporations and make it go out of business", Reade said.

It also marks the second time in the last month the Trump administration has moved to roll back sanctions against a foreign company that had almost been pushed into insolvency, raising questions over how thoroughly the White House is co-ordinating sanctions policy with federal agencies.

Which brings us back to Trump.

"Our intelligence agencies have warned that ZTE technology and phones pose a major cyber security threat".

"You should care more about our national security than Chinese jobs", he wrote on Twitter.

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Shares of ZTE suppliers including Acacia, Oclaro, Lumentum Holdings Inc, Finisar Corp, Inphi Corp and Fabrinet fell sharply after the ban was announced. ZTE's relationship with Google is pretty much unavoidable, such is the dominance of Android on the OS world, but allowing such a dependence everywhere else to develop over time now looks like a ridiculous development.

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